How To Get a Boda Boda Loan in Kenya

April 12, 2022

boda boda loans in kenya

Boda Boda (motorcycles), also known as nduthi, is a popular means of transport for lower, middle, and upper-class communities in Kenya. This is because it offers a convenient means of transport from one area to another and its ability to navigate through the worst of the routes that are inaccessible by motor vehicles.

Many people have taken advantage of this high demand to convert the sector as a financial source, and it has inarguably employed many people who were initially jobless. However, acquiring a motorcycle can be a painstaking process as it requires a significant amount of money. For this reason, financial institutions have come to their aid and are now offering affordable loans to finance motorcycles in Kenya.

Companies offering Boda Boda Loans in Kenya

1. Mogo boda boda loans

Mogo is one of the biggest vehicle and motorcycle financing companies in Kenya.

You can acquire your motorcycle within 24 hours after reaching out to them, provided that you meet their criteria.

To get a motorcycle loan from Mogo, you need to;

1. Provide a 3-months M-Pesa statement
2. Provide Personal ID
3. Own KRA Pin
4. Be 20 – 60 years old
5. Have one guarantor

Then you will be required to visit an authorized dealer and choose a motorcycle model of your preference before signing a contract with your personal information and paying a deposit fee of Kh15,000.

After completion, you will be issued with the motorcycle within 24 hours, and you will be required to make daily payments of Ksh300 minimum. One will settle the loan within 52 weeks and 104 weeks, depending on the loan repayment pattern.

2. Mwananchi Credit boda boda loans

Mwananchi credit is a famous credit facility known for providing loans to everyone despite their credit scores or history.

They provide affordable motorcycle loans as they finance 70 percent of the total cost. In addition to loans, they offer insurance cover worth Ksh9,000 per annum to the borrowers. The comprehensive insurance cover will carter for medical expenses in case of accidents.

For you to qualify for a loan with Mwananchi Credit limited, you must;

1. Have a valid rider’s license
2. Have an active bank account that has been in use for the past three months
3. Provide a 6-months M-Pesa statement
4. Be over 18 years
5. Have a KRA pin
6. Have at least two guarantors
7. Pay the Ksh15,000 deposit fee

Mwananchi Credit Limited offers flexible repayment terms from as little as Ksh300 daily.

how to get boda boda loans in kenya
Boda boda operators in Kenya.

3. KCB boda boda loans

Kenya Commercial Bank (KCB) is among the leading banks in Kenya, and they have offered their hand to anyone willing to acquire a motorcycle with 70 percent financing. The remaining 30 percent is paid by the borrower.

They have friendly rates of 13 percent per annum, but it is negotiable to 10 percent annually. They provide an insurance cover to all riders that cost Ksh9,600 yearly.

What do you need to get a boda boda loan from KCB?

1. Must be an active KCB account holder with a six months transaction history or a 3-months for group savings account
2. Have a rider’s license
3. Have a good credit history as an indication that you will pay the loan
4. Meet 30 percent cost of the motorcycle as the bank finances 70 percent
5. Have a guarantor for individual loans. Group loans require no guarantors
6. Guarantee by KCB account holder where a logbook is held on a simple deposit

4. Capital SACCO boda boda loans

Capital SACCO, initially Meru Farmer’s co-operative Union Limited, was started in 1972 but rebranded in 2012 to deepen its roots in financing the informal sector that employs over 72 percent of Kenyans.

They introduced motorcycle loans of up to Ksh100,000 with flexible repayments terms that favor a ‘common mwananchi.’

To apply for this loan and check on their terms and conditions, one is required to visit one of their branches spread across Meru, Baringo, Litein, Nairobi, and Kerugoya.

5. KOPESHA boda boda loans

KOPESHA is the newest lender to explore the motorcycle financing sector.

In collaboration with Uber Eats, they provide loans at affordable rates to aspiring motorcycle owners across Kenya. The loans are processed under 24 hours after application.

What you need to get a motorcycle loan from KOPESHA:

1. Deposit of KSh15,000
2. Valid Driver’s License
3. One guarantor + digital copy of their MPESA Statement
4. KRA Pin
5. National ID
6. Digital copy of your 12-month MPESA statement

New motorcycle owners, courtesy of KOPESHA, are required to pay installments agreed upon with the firm.

How Long Can a Motorcycle Loan Be?

Depending on the lender and agreed repayment terms with the borrower, average motorcycle loans can be 52 to 104 weeks.

How Much Does a Boda Boda Cost in Kenya?

A new boda boda sells between Ksh80,000 to Ksh150,000 depending on the model. For instance, a TVS HLX Star 100cc goes for around Ksh96,000, while a Bajaj Boxer BM 100cc costs an average of Ksh124,000.

Used, Ex-UK, and Ex-US motorcycles trade below Ksh75,000.

Is Boda Boda Business Profitable?

Boda boda business is profitable but not in all areas. Riders’ daily income depends on the environment in which they operate, and urban boda boda riders surpass the income of those in rural areas. This is attributed to the high influx of people in cities and towns.

In a day, boda boda riders in urban areas make between Ksh1000 to Ksh2000 while those in rural areas go home with Ksh500 to Ksh1,000. Those in rural areas make a lot of money on market days and during the opening and closing of schools.

How Much is Captain Max Motorcycle in Kenya?

Captain Max motorcycles are preferred by many due to their high engine power of 150cc and their ability to consume fuel rationally.

They are sold between Ksh90,000 and Ksh150,000 across motorcycles dealers outlets countrywide.

captain max motorcycle for sale

How Much is Skygo Motorcycle in Kenya?

Skygo is one of the cheapest motorcycles on the roads. A used Skygo is sold below Ksh60,000 depending on factors like age and mileage, while a new Skygo motorcycle retails between Ksh100,000 and Ksh125,000.

How Much is a Boxer Motorcycle in Kenya?

Boxer motorcycles are modeled to operate in rugged terrain with mad grip tires and massive engine power, thus their high price.

Although prices vary depending on engine capacity and other specifications, Boxer motorcycles retail at over Ksh100,000.

On average, the price of Boxer motorcycles in Kenya is Ksh100,000 to Ksh150,000.

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